The Chairman/Managing Director,
State Bank of India/Associate Banks/
14 Nationalised Banks/Corporation Bank
Dear Sir,
Public Provident Fund Scheme, 1968
Government of India, Ministry of Finance have observed that
some agency banks are not strictly adhering to the procedure prescribed under
Public Provident Fund, 1968 while operating the scheme especially in reckoning
the maturity period/allowing extension of maturity period. One branch of an
agency bank, in violation of the extant Government instructions, has allowed
the extension of maturity period on 23 April 2004 itself, for a block
period of 5 years, in respect of Public Provident Fund Account eventhough the
Account was opened on 8th June 1989. The extension in the case can
be permitted only after expiry of 15 years from the close of financial
year in which the initial subscription was made in the PPF Account (i.e. on
or after April 1, 2005).
2. In this connection, we draw your attention to the provisions
contained in paragraph 9(3), (3A) & (3B) under Public Provident Fund
Scheme, 1968 as also under paragraph Nos. 13 & 14 of "Summary
of the Public Provident Fund Scheme" regarding extension of maturity
period on PPF Account, extracts of which are furnished in the Annexure for ready
reference.
3. As it is necessary to ensure that the instructions issued
by Government of India/Reserve Bank of India from time to time are strictly
adhered to by the designated branches operating the Public Provident Fund Scheme
1968, you are requested to reiterate the instructions to your designated branches
immediately for strict compliance.
4. Please acknowledge receipt.
Yours faithfully,
(D. Rajagapala Rao)
Deputy General Manager.